Since the early Greeks created deductive logic, science has evolved dramatically while unreal. Without science and scientific advancements, it would be impossible to live with the current conditions. We have cars to move everywhere, infrastructure, telecommunications, we have advanced in health research, cures and remedies for diseases that not too much time ago were mortals; we have developed measures in how to treat and prevent pollution or studies of psychology that allows us to understand much better the learning progress and so on. In short, science allows us to manage all the possible situations to which individuals and human beings may face throughout their lives. Can you imagine, nowadays, for a developing country, to live without mobile phones? Or Internet? Or gps? Or even Facebook?

However, in my view, evolution of science is “getting out of hand”. Some advances are creating “weapons” truly dangerous to population or even for planet. Nuclear power, that while for some reasons can be considered useful since it reduces emissions, it also has an extremely high risk associated; or nuclear weapons able to destroy, indeed, all population and so all science advances. But not only these examples can be considered risky for society, but simply facts as trying to colonize Mars, control cleaning tasks with robots, driving without driver, smart homes and so on. All these technological developments enable, apparently, to improve the welfare of the people but, in my view, in some cases exceed the ethical and real limits. More technology, more limitations the individuals will have in their decision making process. We seem to try to reach a situation where humans do not control anything but machines do. All the labor force is being replaced by smart machines, losing, because of evolution, a large number of qualities that define us as rational beings. Furthermore, for example, all these technologies will cause an increase of energy consumption (for instance data center servers consume huge amounts of energy), so it is necessary to use science also to produce solutions with a very low energy consumption and high efficiency.

Source: http://www.corresponsaldepaz.org/

On the other hand, it is important to note that science is not equally distributed between population around the world. It is true that all the new solutions can be applied in developing countries (for instance the distribution of mobile phones in India, the implementation of efficiency measures of water management in Jordan or in some countries of Africa). Nonetheless, to implement science efficiently and evenly throughout the world, it has to reduce the cost of its outcomes in order to be accessible to the poorest. Furthermore, governments should implement policies in order to give economic incentives to entrepreneurs, business and researchers to focus their research and projects in developing countries, and especially to meet their needs. It does not have sense, in developing countries mainly, but also in some developed countries, to invest and research in projects that are not really fulfilling the real needs or even it will not be used by the population because of the lack of education or training. Therefore, science requires not only research and economic improvement, but also a large dose of reality, ethics, and in many cases training (for instance, the construction of latrines in Africa, without an adequate education, become useless). Concerning to health, it is also important to mention that it seems very controversial the huge amounts of money spend it preventing and cure for disease with a high ratio of mortality in developed countries such as cancer (which is totally fair indeed) while many children in Africa do not have access to vaccines for preventing malaria, dengue fever or even diarrhea.

Source: Own elaboration

To sum it up, in my view, society should be very proud of the numerous advances that science has reached allowing us to achieve a really good standard of living, mainly in developed countries. However, the risk, due to the normal development of science is high. If science is applied incorrectly, and precisely one of the advances as Internet facilitates it, can become a really important risks not only for society but also for ecosystem and the planet. On the other hand, the technology must be applied equally in society. It is absolutely necessary to promote policies and funds to allow science to work not only for the richest but also to expand it to the poorest. Obviously, some advances, due to the immaturity and their cost, are very complicated to apply to everyone, but at least, science and research should provide the necessary tools and infrastructure to fulfill the basic needs. What sense does it make to spend millions of euros launching rockets to Mars or the moon to research, while millions of people do not have the technologies and infrastructures to have access to water, water and waste treatment or for the prevention of disease? People and science must be aligned, but, if it is not possible, first are human beings and then science.

]]>http://www.eoi.es/blogs/carloscerdan/2012/06/21/technology-and-development-science-orand-development/feed/1Social Entrepreneurship 3. Bunker Roy and his Barefoot Collegehttp://www.eoi.es/blogs/carloscerdan/2012/06/04/social-entrepreneurship-3-bunker-roy-and-his-barefoot-college/
http://www.eoi.es/blogs/carloscerdan/2012/06/04/social-entrepreneurship-3-bunker-roy-and-his-barefoot-college/#respondMon, 04 Jun 2012 14:34:40 +0000http://www.eoi.es/blogs/carloscerdan/?p=593Although I had not though to write more blogs about the social entrepreneur subject, reviewing all the information and slides that we have, someone came to my mind; Bunker Roy and his Barefoot College. It is amazing to see how a man that has studied in one of the best university in India is devoting his entire life to help to pull the poorest out of the poverty. How he, and his foundation, provide services and solutions in rural communities with the objective of making them self-sufficient. The Barefoot college education program expects to teach literacy and skills, encouraging learning-by-doing. Basically, it offers tools for people that are not included in the society development because of their illiteracy, handicaps or because never they have not have the opportunity to go to the school, to achieve their development based on their desires and their needs of improving. Enjoy the amazing TED that he gave US about his college in India.

]]>http://www.eoi.es/blogs/carloscerdan/2012/06/04/social-entrepreneurship-3-bunker-roy-and-his-barefoot-college/feed/0Social Entrepreneurship 2. Necessity, idea and resources for sustainable developmenthttp://www.eoi.es/blogs/carloscerdan/2012/06/04/social-entrepreneurship-2-necessity-idea-and-resources-for-sustainable-development/
http://www.eoi.es/blogs/carloscerdan/2012/06/04/social-entrepreneurship-2-necessity-idea-and-resources-for-sustainable-development/#commentsMon, 04 Jun 2012 14:21:28 +0000http://www.eoi.es/blogs/carloscerdan/?p=580Another issue that really I would like to note about our entrepreneurial class, is the comparison between traditional entrepreneurs, social entrepreneurs and philanthropist/foundation. When I enroll the International Master In sustainable Development, I have never listened to about social entrepreneurs. In fact I really though that the best way to alleviate the poverty and to help to the poorest country was through philanthropy. However, after taking this master, and in particular this class, I realize that it is important to empower the individuals in these countries in order to allow them to set up or to work in something that really they are interested in. To reduce the poverty does not make sense to try to solve the problem from developed countries giving aids if the real needs and desires of people are not included at all. Furthermore, social entrepreneurs allow to maximize the called Social Return on Investment (unlike the Return on Investment in traditional business) and to share ideas to achieve the best possible practices. Three basic steps are necessary to set up a social business; one necessity, one idea and resources to carry it out, promote the sustainable development!

It is difficult to highlight something in particular of our class in social entrepreneur. The first thing that comes to my mind, is how wonderful and easy would be to promote, and to help the social entrepreneurs with their ideas. Ideas that try to push our society and satisfy their needs. Projects think to solve the real problems of our society. Projects that have into account the society by itself before offer a product useless. Definitely, entrepreneurial solutions to social issues. “Business” such as Velocity, playpums, La Fageda or re-make are clear examples of how brilliant ideas based on real needs, with effort and trust, can become real solutions to achieve the development, not only social but also environmental and economic

When in 1972, sir Amancio Ortega founded the company GOA Confections dedicated to the manufacture of clothing was difficult to anticipate that later he becomes one of the richest men in Spain.

In 1975, he opened the first store under the name Zara in a central street in A. During the next ten years, the company expands rapidly throughout Spain to create, in 1985, Inditex (Industrias de Diseño Textil SA).

After the expansion through Spain, the company focus all its manufacturing facilities on Zara’s brand. In the following years, company expands abroad of Spain opening stores in Porto (1988), New York (1989) and Paris (1990).

Since May 2001, Inditex is listed on the stock market. Today (April 15, 2012), it has nine fashion brands (Zara, Kiddy’s Class, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque) with 5,527 stores in 82 countries around the world (Inditex, 2012).

Along its history, Inditex has faced different problems of reputation that could have severely affected its sales. However, thanks to the quick reaction of the company, the innovation and flexibility in its business, it has allowed not only to maintain its sales but to grow dramatically (although in Spain, the sales have decreased by 1.6% in the last three years).

This report will address two of the major reputation crisis to which Inditex has faced along its history.

Slave labor in Brazil

On August 18, 2011, the Brazilian Ministry of Labour was made public that after a control operation, it discovered that three sewing workshop in the State of Sao Paulo, used slave labor obliging employees, to work from dawn to dusk in making garments to sell them in Inditex stores later on.

The Inditex reaction was quick and effective. Inditex drew a note explaining the case. From the beginning, Inditex cooperated with the Brazilian prosecution in order to solve the problem not opposing any resistance in their information requirements. In this note, Inditex denied any direct responsibility in the case, although it was assumed that one of the 50 Brazilian suppliers (AHA Industria e Comercio Ltda of Roupas) would have incurred in violation of its Code of Conduct for External Manufacturers. Also it reported that “it had required to the supplier responsible for the fraudulent contract to remedy this situation.” Inditex also reported that it was working with the Ministry of Brazilian Labour “to strengthen the review of the production system, both the supplier and the rest of its businesses in Brazil.”

In November, Brazil asked for € 8.2 million to repair damage occasioned but it was not until 20 December, when Zara made the commitment with the Brazilian government to invest a fortune to remove “the poor working conditions of business providers “and invest $ 1.8 million (1.4 million) in social actions. The document also established the creation by the Spanish textile group of an emergency fund to resolve any cases of insecurity among the employees employed by its subsidiaries (elpais, 2012a). From my point of view, Inditex response was appropriate

Slave labor in Brazil

On August 18, 2011, the Brazilian Ministry of Labour was made public that after a control operation, it discovered that three sewing workshop in the State of Sao Paulo, used slave labor obliging employees, to work from dawn to dusk in making garments to sell them in Inditex stores later on.

The Inditex reaction was quick and effective. Inditex drew a note explaining the case. From the beginning, Inditex cooperated with the Brazilian prosecution in order to solve the problem not opposing any resistance in their information requirements. In this note, Inditex denied any direct responsibility in the case, although it was assumed that one of the 50 Brazilian suppliers (AHA Industria e Comercio Ltda of Roupas) would have incurred in violation of its Code of Conduct for External Manufacturers. Also it reported that “it had required to the supplier responsible for the fraudulent contract to remedy this situation.” Inditex also reported that it was working with the Ministry of Brazilian Labour “to strengthen the review of the production system, both the supplier and the rest of its businesses in Brazil.”

In November, Brazil asked for € 8.2 million to repair damage occasioned but it was not until 20 December, when Zara made the commitment with the Brazilian government to invest a fortune to remove “the poor working conditions of business providers “and invest $ 1.8 million (1.4 million) in social actions. The document also established the creation by the Spanish textile group of an emergency fund to resolve any cases of insecurity among the employees employed by its subsidiaries (elpais, 2012a). From my point of view, Inditex response was appropriate while avoiding any responsibility. It is true that it seems difficult to control all suppliers, and it may be that Inditex did not have knowledge of such practices. However, it is equally true that a huge company as Inditex, should implement more stringent controls in order to avoid such situations. However, taking into account that Zara never admitted the knowledge of the facts, I think they acted in a smart way, investing on social projects and control of its suppliers. If the company was presented an opposition to the government, without collaboration, the consequences on its reputation would have unpredictable considering the high investment that the company maintains on the country, with over 30 stores in operation (elpais, 2012a).

Image theft

Source: (elpais, 2011)

Another crisis of reputation to which Inditex had to face was the February 16, 2011. Stradivarius, owned by Inditex, was embroiled in a scandal of plaggirims. Inditex used pictures included in two blogs without the consent of the bloggers. Copying affected, at least two young, the Swiss student of 19 years old Michèle Krusi (editor Bewareof my heels) and 22 French Louise Ebel, author of one of the most popular fashion blogs in Internet, Miss Pandora.

Both have on their blogs, pictures with its own outfits, which were used with little modifications as the basis for illustrations of the shirts.

Another scandals related to the bloggers and photographers, were the appearance without the consent of the French Betty Autier, on Zara clothing in 2010, using photographs of another blogger named Gerard Estadella or the use of a snapshot of the photographer Andy YvanRodic in Lefties clothes.

Inditex’s response in these cases, in my view, was also effective and fast. Inditex decided immediately to remove these shirts and apologize to the bloggers for the damages caused. Moreover, in the case of Gerard Estadella, Inditex decided to hire his services to enhance the work of bloggers.

Likewise the company, besides of apologizing, said the shirts were designed by an external supplier, and therefore, it unawares if its partner has the rights necessary for printing the bloggers images on its shirts.

Conclusion:

In both cases, Inditex, in my view acts properly, fast in order to reduce the reputation risk. However, even taking into account the large amounts of external suppliers that the company has, it is difficult to understand that a company of such caliber and so exposed to the public, does not have more extensive checks of its designers and manufacturers. Scandals like this, for a company like Inditex, could cause a serious risk in lack of credibility and ethics still it is not directly responsible.

On the other hand, it is important to note the commitment that Inditex has to enter in social media. Currently, it has an official Facebook page, helping page, twitter profiles in the U.S., Japan and South Africa and a video channel on youtube. However, according to the study of “engagement” (L2 Think Tank 2011), Inditex (Zara particulary) gets one of the worst results. It does not interact with the community as a mark or moderate the content of it, does not give added value, does not respond to complaints and claims and it has not a Twitter for Spain. So it seems that it has much to do in order to become important in the social media. In contrast, Inditex has launched a marketing innovator in the sector. It is a form of marketing called “street style” that aims to promote blogging as a means of communication. In 2010, Inditex created Zara People. It allows customers to upload, after registration, their photos wearing Zara’s clothes. The selected users on the platform will be rewarded with 300 euros (modaes, 2012).

Therefore, although Zara has faced (and will face) to different reputation crisis (online and offline), it is true that his wingspan, its sources, and its ability to innovate and cooperate has allowed it to grow dramatically without significant loss of credibility. However, it was convenient, in my view, to put more resources in the prevention of such reputational risks from its suppliers because some of these errors can trigger not only economic losses but also great confidence crisis in its customers, suppliers, investors and so on.

]]>http://www.eoi.es/blogs/carloscerdan/2012/05/04/online-reputation-inditex-case-study/feed/0Apple, an example of CR integration into the Corporate Strategy?http://www.eoi.es/blogs/carloscerdan/2012/05/04/apple-an-example-of-cr-integration-into-the-corporate-strategy/
http://www.eoi.es/blogs/carloscerdan/2012/05/04/apple-an-example-of-cr-integration-into-the-corporate-strategy/#respondFri, 04 May 2012 14:53:50 +0000http://www.eoi.es/blogs/carloscerdan/?p=541

Source: (ipanspain, 2012).

Apple is one of the world’s most important technology company. Its sales increase every year and its innovation is one of the main key aspects for the success. But, as a technological leader, is it also a “sustainable” leader?, In other worlds, is Apple applying properly a CSR strategy? This blog tries to answer both questions by analyzing which CSR actions they have in theory, and which they are applying in practice.

First of all, it is important to highlight which are the main issues that the company faces regarding to CSR. Apple has developed a code of conduct to explain how Apple has to do business in a ethical way including issues such as human rights, customers and business relationships, government and communities (avoiding the bribery and corruption), environment, health and safety and so on. Furthermore, it also has carried out a particular code focus on its suppliers (Apple, 2012).

Source:(Applesfera,2012).

Secondly, Apple conducts audits every year to control the supply chain to assure the proper application of the Apple’s Supplier Code of Conduct. Thus, Apples carries out employees training programs about local laws, rights and occupational health and safety. Furthermore, they state that they have a zero-tolerance policy for underage labor, and offer education opportunities at its suppliers’ facilities free of charge. So, Apples seems to apply and control all its supply chain. However the true is different.

The first interesting point to emphasize is the codes of conduct structure. A code of conduct should start explaining how to apply social ethics in a business such as respect for individual dignity, no discrimination between employees, conditions of employment and compensation for personnel in a fair and non-discriminatory manner, working hours of personnel accordance with the specific nature of their duties and so on). However, Apple begins its code focusing much more on selling products to their customers, confidentiality agreements and intellectual property (Apple, 2012a). It seems that all the main principle for them is to sell products and protect itself from seepage or data or resources delivery. It can seems something frivolous, but from my point of view, it shows the main idea of the company forgetting, as a main principle, the purpose of a code of conduct.

Source: (Chinaveboss, 2012).

On the other hand, Apple has faced through this last years to different problems with its suppliers. For instance it has proved that in Foxcom, its main suppliers, most of the employees have unfair salaries and workdays of more than 60 hours (Infobae, 2012) and different suicides have been registered. So, although the company has a code of conduct and publish an annual report about what it does, the outcomes doesn’t seem to be enough for a company that should be the leader in corporate social responsibility.

Source: (Greenpeace, 2012a).

Regarding to the environmental impact, although the company includes also the protection of the environment in its code of conduct, the true is that, according to Greenpeace, Apple has bought a land next door to Facebook’s data center in Oregon for a second facility that is likely to be powered by dirty energy. The announcements have drawn a lot of attention because data centers use a huge amount of electricity to deliver our photos, videos, and music to our “iDevices.” (Greenpeace, 2012)

Taking into account all the problems that have came up to Apple during this years, from my point of view, the company strategy is focused too much in innovation (new versions of IPAD or IPOD are launched almost every year) demanding to its suppliers lower prices and high quality, forgetting about the environment and the social responsibility of its supply chain. The strategy and the code to follow seems to be clear. However, if the company is not able to invest more in corporate social responsibility, relaxing its demand to its suppliers and helping them to fulfill its code, it is impossible to consider Apple as a Social responsible company. The company needs to engage all the stakeholders and one of the most important are the suppliers. They cannot be focus only on the loyalty of its clients but also in the society needs.

Currently, it seems that only the biggest companies have to apply CSR in their strategy. It seems that, because of these companies employ hundreds or thousands of workers and are the most pollutans, they must be the only ones that are “obliged” to implement a CSR strategy. However, in this class we have learned that SME also have an important contribution to employment, GDP and environmental impact.

So, it is important to apply CSR in all kind of companies, no matter how big it is. Of course, each company will implement the actions according to its size and market, but the values of each company must be the values of the society and the environment in order to promote the sustainable development.

]]>http://www.eoi.es/blogs/carloscerdan/2012/05/03/csr-in-smes-%e2%80%93-part-1/feed/0CSR in SMEs – part 2http://www.eoi.es/blogs/carloscerdan/2012/05/03/csr-in-smes-part-2/
http://www.eoi.es/blogs/carloscerdan/2012/05/03/csr-in-smes-part-2/#respondThu, 03 May 2012 21:46:53 +0000http://www.eoi.es/blogs/carloscerdan/?p=520Corporate Social Responsibility Corporate vs Eco-eficiciency, social and economic responsibility? Sometimes the society, companies and organizations seems to consider CSR only as a social issues. However, CSR is not only about working conditions, work-life balance, health and Safety or labor practices but also is about waste reduction, pollution avoidance, recycling, responsible supply chain management, product safety or fair pricins. CSR must be included in a SME as a part of the strategy taking into account all the three pillars; social, economic and environmental.

Main conclusions of the Article: A Practitioner´s Guide to a Low Carbon Economy: Lessons from the UK. by Samuel Fankhauser. Policy paper 2012.

Decarbonisation is not just a revolution of production, is a balance of efforts among supply via technological research and improvements in demand via changing the minds and the behaviour.

Breaking the link between development and emissions.

There is the necessity to act intensively now, humanity can’t wait the fall in the cost of low-carbon technology.

The challenge of translating long term goals into short term measurable laws. We need a redesign of the modern economy.

To achieve low carbon economy it is important to create long term credible incentives and to face behavioural and market barriers.

Legislation has to be the basic guide policy to reduce the uncertainty for decision makers.

Decarbonisation of socio- and economic-movement does not need to be reactive to a legislative basis to start to be disseminated.

Electric power is a central issue to focus on, because it accounts for a large fraction of total GHG emissions.

Command & Control measure: no flexibility due to a fixed cap which may be quite unfair due to market diversity, finally is hard to check compliance.

Transition to a low carbon economy is feasible as long as the politicians are willing to include it as a need and target.

]]>http://www.eoi.es/blogs/carloscerdan/2012/02/24/low-carbon-economy/feed/0Climate Change: Clean Development Mechanism: BRT Metrobus Insurgentes, Mexicohttp://www.eoi.es/blogs/carloscerdan/2012/02/14/climate-change-clean-development-mechanism-brt-metrobus-insurgentes-mexico/
http://www.eoi.es/blogs/carloscerdan/2012/02/14/climate-change-clean-development-mechanism-brt-metrobus-insurgentes-mexico/#respondTue, 14 Feb 2012 19:40:53 +0000http://www.eoi.es/blogs/carloscerdan/?p=478This blog tries to analyzed the project BRT Metrobus Insurgentes developed in Mexico. It is a project included as a CDM registered in 10 August 2011. The projects host is Mexico while the country participant is Spain and reduce 46,544 metric tonnes CO2 equivalent per annum. The objective of the BRT (Bus Rapid Transit) Metrobus Insurgentes in the Zona Metropolitana del Valle de México (ZMVM) was to establish an efficient, safe, rapid, convenient, comfortable and effective modern mass transit system based on a BRT system. The ZMVM has nearly 20 million inhabitants. The project transports annually around 80 million passengers.

Map 1. BRT Line of Project

The core aspect of the project was mainly to create a new infrastructure consisting of a BRT bus-only route with a length of 19.6 kilometres serviced by new articulated and bi-articulated Euro 3 or Euro 4 diesel buses with at-level boarding and alighting, real-time next bus information displays, pre-board ticketing and fare verification and rechargeable electronic cards for payment to streamline the boarding process.

Concerning to the sustainable development, the project contributes in a significant manner:

Improved environment through less GHG and other air pollutant emissions, specifically particle matter, NOx and sulphur dioxide. This is achieved through a more efficient transport system and through new buses.

Improved social well being as a result of less time lost in congestion, less respiratory diseases due to less particle matter pollution, less noise pollution and fewer accidents per passenger transported.

Less accidents due to improved public transit organization and management.

Economic benefits mainly on a macroeconomic level basically by reducing the economic costs of congestion.

The first BRT was established in Curitiba, Brazil in the 70ties. Bogota/Colombia then took a leading role early this century in world-class BRT systems. However it has not been technology transfer to the current project.

On the other hand, regarding to the environmental impact of the project, it was considered positive. The main impacts expected were the following:

Reduction of air pollution basically particle matter, NOx and HCs plus having a more efficient public transport system

Positive impact on potential transboundary air pollution due to reduced emissions of air pollutants (PM, NOx, SO2 basically).

The project activity reduced the usage of fossil fuels. Less usage of fossil fuels is parallel to less SO2 emissions as latter are dependent on the sulphur contents of the fuel used. As also the quantity of gasoline vehicles (basically taxis and cars but also small buses) was reduced through mode shift it also had a reduction of these emissions.

Reduced noise pollution due to a reduced amount of vehicles, improved traffic fluidity with less stopand-go traffic and more modern units.

Figure 1. BRT Bus Insurgente

The potential negative impacts detected were typical of road construction such as cutting trees, debris, noise and air pollution during construction, etc.

Regarding to the additionality of the project, it was determined using the “Tool for the demonstration and assessment of additionality (version 05.2, EB 39 Annex 10)” (more information in CDM,2006).

On the other hand, the baseline case was included in order to estimate the impact without the project. The baseline emissions included the emissions that would have happened due to the transportation of the passengers who use the project activity, had the project activity not been implemented. This was differentiated according to the modes of transport (relevant vehicle categories) that the passengers would have used in the absence of the project. The baseline was a continuation of the current transport system consisting of various transport modes between which the population chooses: NMT (Non-Motorized Traffic) with bikes and per foot; Private passenger car; Taxis; Motorcycles; Buses and Metro or LRT.

For all above listed transport modes the emissions per passenger kilometre (PKM) were calculated except for the rail-based. Figure 1 gives an overview of baseline and project emissions. The baseline scenario incorporated technological advancements in terms of emissions per distance driven of various modes of transport as well as eventual fuel changes of baseline modes of transport during the project activity.

Figure 2: Baseline and Project Emission

Source: (CDM,2006)

In conclusion, the project by itself is causing a very positive impact in Mexico. However, it could not fulfill all the requirements to be considered as a CDM. Mexico is the first Latin America country to accredit verifiers agencies to control greenhouses emissions (Excelsior, 2011). Thus, although Mexico is located at No. 13 among the top of 15 greenhouse gas generators, it approved in 2009, the Special Climate Change Program 2008-2012, in which Mexico is committed to reducing GHG emissions by 20% in 2020 and 50% in 2050. So, it can be inferred that probably, Mexico is trying to improve the transport because it is one of the major contributors of greenhouse gases (bionero, 2012). Finally, regarding to the vulnerability to future climate change, the vulnerability of the “Valle de Mexico” appears to be high because it will cause droughts, rainfall and more severe cyclones, thereby affecting the availability of water. It is not appear to have consequence to the project by itself.